The NAO commented on the steps that Customs have taken to measure the stock of fraud in their Audit of HM Customs & Excise under Section 2 of the Exchequer & Audit Departments Act 1921 which was published on 13 February 2002. Discussions about the approach and timing of a specific review of the methodology for calculating VAT missing trader fraud are underway.

To ask the Chancellor of the Exchequer (1) how many suspect VAT registrations have been refused under the programme to counter VAT missing trader fraud; how many missing trader registrations have been identified and cancelled since August 2001; what the value is of total injunctions secured since August 2001 against missing traders; and if he will make a statement; [74128]

(2) if he will provide an update of his November 2001 estimate of the cost of VAT missing trader fraud; and if he will make a statement; [74130]

(3) what estimate he has made of the (a) percentage and (b) absolute reduction in VAT missing trader fraud since September 2000; and if he will make a statement. [74129]

Details of the size of this form of fraud and operational activities to tackle it were first set out in the "Tackling Indirect Tax Fraud" document published598W
at the time of the November 2001 Pre Budget Report, and will be updated on a routine annual basis in line with the commitments made in that document.